The results of the 2016 TD Ameritrade Millennials and Money Survey have been posted. I read about them in an article by Business Wire and I found the outcomes interesting—quite the dichotomy.

Since Millennials are typically immersed in social media, it wasn’t surprising for me to find out that they feel a lot of pressure to keep up with, well, everyone. It has a lot to do with their YOLO mentality. (For those who are acronym challenged like me, it stands for you only live once.)

Almost 25 percent feel the need to keep up with their friends spending habits.

15 percent admitted to spending money in order to make a good impression.

57 percent said they needed a substantial amount of money above the minimum needed for essentials (compared to 34 percent of Boomers).

53 percent are willing to retire later to maintain their desired lifestyle.

Over half of Millennials reported they spent more/not saved as much in a month than they wanted (compared to 29 percent of Boomers). 56 percent said this happens very often/somewhat often.

On the flip side, the poll also shows that Millennials are actually better handling their money than I thought they were. Even though they are very competitive and care about what others think, “…Millennials came of age during a major financial crisis, which increases the propensity to save and financial conservatism,” said Matthew Sadowsky, director of retirement and annuities at TD Ameritrade, Inc.

47 percent are anxious about debt.

62 percent identify themselves as savers.

80 percent have a budget.

72 percent are saving for retirement.

Almost half (49 percent) are concerned about running out of money in retirement.

“Millennials were in a position to learn the value of financial preparation, having grown up in the aftermath of a recession. The qualities they have developed like budgeting discipline and a realistic outlook on retirement may well pave the way toward their financial future,” said Sadowsky.

As you would expect, Millennials and Baby Boomers think very differently on a plethora of subjects, but both generations come together and are in agreement that:

The number one reason to save is to have the confidence you can meet your financial obligations whatever happens.

To me, the best part of the survey revealed that both generations, Millennials and Boomers alike, are optimistic about feeling financially secure in the future.

A. Alliance Collection Agency, Inc. is a full service, licensed accounts receivable management and debt collection agency providing highly effective, customized one on one management and recovery solutions for our business partners. Founded in northern Illinois in 2005, we have been proudly improving the bottom-line on behalf of our business partners in and around Chicagoland for over 10 years.

Financial headlines continue to point out the rising amount of consumer debt. It is rising very rapidly, and is at historic highs. Just a few months ago, the New York Federal Reserve came to the conclusion that the economy was in good enough shape that consumers could afford to pay it off. Never mind if they had little or no savings (a surprising number don’t), they are employed and are paying their debts. New debt statistics certainly seem to warrant raising a warning flag to at least a yellow. Does this or does this not spell trouble ahead?

Debt collection is our business, and keeping our customers appraised of changes in the credit environment is very important; especially as it relates to managing or maintaining vigilance with regard to the level of their bad debt.

With consumer debt rising, limited savings to draw on, increasing costs for healthcare as well as indeterminate economic signals the question is: Is the parrot, dead or merely…resting?

Mr. Gray asserts that “U.S. banks have ramped up lending to consumers through credit cards and overdrafts at the fastest pace since 2007, triggering concerns that they are taking on too much risk in a slowing economy.”

He points out that “The industry has piled on about $18 billion of card loans and other types of revolving credit within just three months, as consumers borrow more and banks battle for customers with air miles, cashback deals and other offers.”

Among the factors leading to the raising of a warning flag include the U.S. election which has added much uncertainty to the economic outlook, potentially impeding growth for the rest of 2016. As he says this increases “…the stakes for lenders at a time when the credit cycle appears to have passed a peak.”

He goes on to cite recently released second quarter data showing significant year over year changes to credit card loans by some of the country’s largest lenders:

Wells Fargo: 10%

Citigroup: 12%

S. Bank 16%

SunTrust: 26%

While he points out that delinquencies continue historically low, there are some other ‘early indications” that the cycle is beginning to turn.

For example: “Synchrony Financial, the largest supplier of store-branded cards in the U.S., sent a shudder through the sector in June when it increased its forecast for credit losses.”

Other banks have boosted reserves for potential losses, among them Capital One which added $375 million to its loan loss reserves, and JPMorgan Chase added $250 million.

Many banks are pushing hard for the credit card business, which of course carries much higher interest rates than other types of personal loans. The logic being that they are targeting consumers with good credit ratings, who are in good financial shape, employed, and seeing their spending confidence boosted by increases in home prices.

So, is the parrot dead, or is it just “…pining for the fjords”?

There seems to be no clear answer. However, we continue to urge vigilance on the part of our customers to maintain focus on their bad debt so as not be caught off guard by a sudden economic swing. Let us help keep your collections in good shape wherever the story goes!

A. Alliance Collection Agency, Inc. is a full service, licensed accounts receivable management and debt collection agency providing highly effective, customized one on one management and recovery solutions for our business partners. Founded in northern Illinois in 2005, we have been proudly improving the bottom-line on behalf of our business partners in and around Chicagoland for over 10 years.

Back-to-school sales are in full swing. But since I don’t have kids in school any longer, coupled with the fact that these sales have been going on for over a month, I’ve found that I’m somewhat desensitized to them. I can now walk past a ginormous display of back-to-school specials without batting an eye—they don’t even register.

But then, there it was, an article about a back-to-school sale of sorts that not only caught my eye, it made me smile. Seriously? I thought. But of course the question was strictly rhetorical. Of course they were serious. The “everything store” was expanding their inventory to include, well, everything.

The “everything store” I’m referring to is Amazon. The article I read was in Fortune.com. And the expanded inventory? Discounted student loans!

Last month, Amazon and Wells Fargo bank announced a partnership that would offer Amazon customers—namely members of Amazon Student Prime—student loans at a discounted rate.

Amazon put a little disclaimer on their landing page that states,” Amazon is not a lender and is not affiliated with Wells Fargo. Amazon is in no way involved in the underwriting or origination of loans from Wells Fargo. All credit decisions, including application approvals, are made solely by Wells Fargo.” I think the two companies have a you-scratch-my-back-and-I’ll-scratch-yours kind of relationship. The partnership will allow Amazon to add an additional perk to their Amazon Student Prime membership and Wells Fargo will get in front of a whole bunch of college students.

Hopefully it will not only be a win-win for the two companies, but for students as well.

A. Alliance Collection Agency, Inc. is a full service, licensed accounts receivable management and debt collection agency providing highly effective, customized one on one management and recovery solutions for our business partners. Founded in northern Illinois in 2005, we have been proudly improving the bottom-line on behalf of our business partners in and around Chicagoland for over 10 years.